[Editor's Note -- Ron Daly is away this week, so Greg Crandell, DigitalMailer's Executive Vice President, will be sharing some insights on our family of blogs.]
This great article from BAI.org came across my desk the other day. Titled “Making the Cross-Sale in Difficult Times” by Katie Kuehner-Hebert [click here to read], it outlines the benefits of cross-selling for financial institutions that need more income and a deeper relationship with their members.
Some key takeaways from their article:
• Two things to overcome – product cannibalization and silo mentality. Just moving money from one account to another isn’t cross-selling. Encourage the various departments in your organization to know a little about another department and make smart, helpful referrals to members/customers.
• Get a taste for the term “needs based” – don’t waste time and effort chasing a consumer who’s not interested.
• Are you offering something that’s useful to consumers? Read the article to find more about Fifth Third Bancorp and their “Goal Setter” accounts.
• Regulation changes [like Reg E] are a hindrance to “big tent” marketing. Some target marketing isn’t just more practical, it’s essential, because certain consumers can’t/won’t qualify for every product.
• Objective Business Services, Inc recommends measuring the amount of money a consumer brings in, not just the number of products they use. A member with five accounts might be more profitable than a member with ten - it all depends which services they're using and which they're in the market for later on.
The article really is worth a read, and reemphasizes what we try to tell new email marketing clients and potential clients every day – target smart. Don’t be afraid to market to people who already know your value and are willing to buy. Go back to the well, there's still plenty of water.
"What about new members?" you ask. Yes, recruiting new members should still be a focus for you, but don't hesitate to bring new members in with a bang - look to onboarding campaigns to help you fill in the gaps in their financial picture. Maybe they just came in for a cheaper loan or a balance transfer to your credit card. What's stopping them from switching other services to you? Talk to them and find out. Making each member a repeat consumer is vital to credit unions' survival.
We can walk you through some of the finer points of email cross-selling. Join us for “Do You Want Fries with That?”, our free webinar. Click here to see our events list and sign up.
Wanting to branch out into the world of email marketing, NARFE Premier marketing director Jessie Dederer turned to the team at DigitalMailer. Our recommendation? An on-boarding program aimed at new members who may not have been aware of everything NARFE Premier had to offer.
On-boarding campaigns are aimed at members that have just joined a credit union. The Automatic Relationship Builder takes in new member lists and sets up a series of emails to be sent to those members across a few weeks. A simple welcome email is followed by information about loans, mortgages, HELOCs, credit cards, checking accounts, money market accounts - anything the credit union thinks would be of interest to new members.
NARFE Premier's own campaign proved to be a great success. Deposit accounts increased 24%, while loan accounts increased 190%.
"This helped trim our marketing budget by 40%, and we are looking at finishing the year spending 50% less," said Dederer. "It's a win-win for everyone. We save money and are still able to deliver the same message with better results while reaching our members the way they want."
The awards keep on coming for Shell. It was only a few weeks ago that they were recognized by the Credit Union National Association as the Community Credit Union of the Year (click here to read the press release).
From the release:
"In today's turbulent world, extending a helping hand in the community is a top priority at Shell FCU. The sole purpose of the credit union is to meet the financial needs of their members, provide free financial literacy and volunteer for a stronger community."
Shell FCU's accolades are well deserved. Their iLife program encourages members and non-members to come and participate in events that will benefit others in their community. Whether it's bicycle drives, cell phones for soliders or a basketball tournament, iLife is dedicated to boosting community spirit, community giving, and volunteerism.
Shell is also celebrating a "great loan year" by offering a $15,000 store credit at Pasadena Honda to a lucky borrower in January. Pretty sweet prize, considering many lending institutions and banks are unable/unwilling to lend these days.
DigitalMailer has found a new way to save credit unions money by cutting out print and postage, reducing man-hours and increasing customer response.
As mentioned in the CU Times article "Northwest FCU Cuts Delinquencies, Costs With E-Mails", DigitalMailer helped Northwest Federal Credit Union come up with a new way to reach members who were behind on their loan payments.
From the article:
The credit union had over 55% of its member’s e-mails on file and implemented a new policy that required members taking out a loan to provide a valid e-mail address.
The credit union works with DigitalMailer on other digital communication products, so [Cindy Cherry, Northwest’s collection manager] approached the provider with the problem.
"I listened to the problem and thought with that number of e-mail addresses, they could stop or knock out a lot of the accounts before they got to the 15-day mark," said Ron Daly, president/CEO of DigitalMailer.
"This is technology that bank and credit card companies have used for years, it’s just about getting credit unions to start using it."
Northwest’s success was self-evident. Of 1,605 collection e-mails sent, 845 members have paid before the 15-day delinquency mark. They were able to find bad e-mail addresses and follow up with members who had missed their notification. Even though the number of delinquencies is still high for Northwest, the process of dealing with them is getting faster, more affordable, and more effective.
DigitalMailer can do the same for you!
Are you dealing with a high volume of delinquencies and limited collection resources? The DigitalMailer Automatic Relationship Builder can give you:
Accurate reporting of e-mail opens, click-throughs and forwards
Easy-to-use template creation system
Easy list management
Fast, reliable delivery
DigitalMailer is offering a new FREE webinar: Just a Reminder...How to make collections faster, easier, and more affordable
Paul J Lucas, national marketing and branding consultant and frequent CU Journal contributor, wanted to share some thoughts on brand management for credit unions. Visit Paul's website at pauljlucas.com,email at paul@pauljlucas.comor call (202) 320 5759 to learn more.
Going into 2010, the top brand challenges for credit unions will be:
1. Misunderstanding what a brand is and why it matters. It is important to have a brand strategy that is embraced by the entire organization. If your staff doesn't get it you can't expect your members to embrace your brand.
2. Lack of understanding in the marketplace that credit unions are ideal primary financial services providers - not just a good place to get a vehicle loan. This means that credit unions must explain both the credit union concept and their own specific brand stories.
3. Communicating that shared branching and ATM networks are competitive to the national presence of large banks. This is critical to a credit union's ability to compete against multi-branch banks (and credit unions). Yet most members have no idea what "shared branching" means or how competitive large ATM networks are compared to many large bank systems. Do not assume members know what "shared branching" means, or how to use it.
4. Bad advertising and marketing that obscure the brand and fail to communicate the credit union's benefits can erode brand value.
Your marketing/messaging must be clear, straightforward and benefits oriented.
Creative does matter - effective creative gets you noticed and it clearly states the benefits of using your CU.
All messages must be consistent building blocks for the brand: advertising; signage; brochures; newsletters; statement messages; eLerts - every member touch point.
5. Overemphasis on reaching new members at the expense of building more productive relationships with current members. Build brand loyalty inside-out! Your current members are the best prospects for increasing product and service penetration. That is key to building a successful, stable financial services organization
6. Letting impatience trump consistency. Throwing together ads, products, announcements, etc. without taking time to tie them to your brand strategy is counter-productive.
7. Constantly changing things in search of the "magic bullet." Changing offers, ad mediums, products, etc. in search of the one magic key to prosperity is a death spiral. There are no magic bullets beyond consistency and brand clarity.
8. Thinking business development reps will quickly and easily grow assets. Business development reps are only as good as they are managed and credit unions do not usually have experienced, effective sales managers on staff. Business development reps who are unskilled and untrained can do your Brand more harm than good.
9. Working with a marketing budget that is too small to achieve marketing goals. Some annual marketing budget benchmarks:
0.25% of assets at a minimum for small institutions.
0.50% for a larger SEG, near community or small market community CUs.
0.75 to 1.50% for large/urban community charter CUs.
10. Remembering that credit unions are chartered to lend money! That requires becoming a competitive retail marketer.
A Special Message to Our Clients - There's No Such Thing as "Over-Disclosure"
by Ron Daly
With the Credit CARD Act of 2009 going into effect today, the talk in the industry is all about disclosure. CUNA News Now published this article "21-day rule: CUNA urges CUs 'document everything'" What's the best way to tell your members about the changes in credit card rules and the changes in your policies as a result of the CARD Act?
The Answer: ANY way you can tell clients about the new regulations is a great way to tell clients about new regulations.
The example below is from Belvoir FCU. Click the thumbnail to see the full size image.
For our clients: We want to let you know that we're here to help and that there are several ways we can increase awareness for your members - the way we did for Panhandle Educators (click below to see example)
We can add a notice to your eStatement notification emails, to your Customer Communication Center splash pages, we can load a permanent notice inside the available statement library, or we can even send a special notification through the ARB to your mailing list. The statement needs to be as clear as possible, and the more members see it the better they'll understand the new regulations.
For NON-Clients: We're more than willing to get you set up with a special one-time ARB email for your specific mailing list. Just give us the addresses and we can get the word out for you.
You and your credit union/financial institution are going to need to act fast to spread the word. Take advantage of the many channels you use to communicate already to be as specific as you can about the new regulation.
Special Guest Dan Schoenherr on "Closing the Loop"
Dan Schoenherr is an experienced credit union consultant. He has expertise in strategic planning, process improvement, board governance, and website strategies. He is President/CEO of Schoenherr Consulting and has led several credit unions in their process improvement programs and creating member delight. Most recently he has been helping credit unions with their Net Promoter® Score programs. He may be reached at dan@schoenherrconsulting.com.
Net Promoter® Score, a loyalty measurement, has been adopted by many credit unions. However, many are not "closing the loop." A Net Promoter® Score survey asks the question: "How likely is it that you would recommend (the credit union) to a friend or colleague?" Customers respond on a 0-to-10 point rating scale and are categorized as follows:
Promoters (score 9-10) are loyal enthusiasts who will keep buying and refer others, fueling growth
Passives (score 7-8) are satisfied but unenthusiastic members who are vulnerable to competitive offerings
Detractors (score 0-6) are unhappy members who can damage your brand and impede growth through negative word-of-mouth.
To calculate the credit union's Net Promoter® Score (NPS), take the percentage of members who are Promoters and subtract the percentage who are Detractors.
Closing the Loop
Most NPS surveys ask a second question: What is the primary reason for the score you just gave us? This is the beginning of the feedback process that allows the credit union to improve the member experience. Digital Mailer's eSurvey system will send an email to a designated credit union employee on any survey received with a Detractor score of 0-6. This allows the credit to contact the member (generally within 48 hours), to understand their concerns in greater detail and resolve any issues.
An internal review of the results should be conducted to identify key drivers of loyalty and establish process improvement plans. The last part of the "loop" is informing members what you did with the information provided.
Email Surveying
About one-third of the credit unions sharing their NPS scores on the CU-Processes website do phone surveys. While this approach provides excellent feedback, it is very expensive. The largest majority are doing mail surveys. This approach offers little chance to immediately "close the loop" with the member, or to delve deeper into the core reasons for the member's dissatisfaction.
Email provides fast surveying (especially if event-driven), and the opportunity to immediately "close the loop" with the member. It also allows you a simple way to survey various segments - a specific branch, the contact center, online users, etc.
If you are considering a Net Promoter® Score program, make sure it includes the steps to "close the loop." Otherwise, you have missed the opportunity to truly improve the member's experience with the credit union.
I thought we'd highlight the good works and good reputation of a credit union that has been serving members for the past eighty-four years.
Pyramid Credit Union in Tucson, Arizona has four generations of members and a life-long reputation of helping those who wanted a better financial future. Recently, an article about Pyramid was published in the CU Journal (click here to read "It's a Wonderful Life Really Does Still Exist in Tucson, Ariz." by Paul Lucas). At Pyramid's 80th annual dinner meeting, members celebrated the good works of the credit union and the credit union celebrated its diverse and long-standing membership.
And what a story! At BarCampBank Vegas, friend and colleague Robbie Wright asked why everyone doesn't get their own credit union started. Some might have balked at the idea, but reading about Pyramid's humble beginnings makes the idea seem pretty smart to me. Lend a little, get a little more back, help out your fellow man. And they've kept the basic concept at their core for eighty years now.
Keep up the great work, Pyramid. Here's hoping that everyone in our industry takes a page from your book and works to better their community and the lives of their members.
Does your CU have a great success story? Tell us about it in the comments section.
Shell FCU recently was named business of the year by the Deer Park Chamber of Commerce. DigitalMailer wants to send its congratulations to a credit union that has set down deep roots in its community of members.
Why are they Business of the Year? Something tells us it's a matter of commitment.
To The Environment:
A look at Shell FCU's website shows they're big fans of a natural, eco-friendly look. At the bottom right-hand corner of their page is a logo showing their participation in the Green Business Alliance. On content pages, links to their eStatement enrollment page encourage members to "go green" with DigitalMailer's eStatements (see below).
To The Community:
From Shell FCU's press release:
In addition to time spent at work, employees also volunteer for the credit union’s FCU "Furthering Community Unity" Team. The FCU Team consists of Shell FCU employees, members and local individuals who participate in events such as blood drives, walks, runs, food drives, Habitat for Humanity and other charitable events. In 2008, the FCU team logged over 347 hours and donated more than $8,900 to help others. As of April 2009, approximately 465 hours have already been donated.
The economic crunch has really "put a hurtin' " on employment. This is especially important to people in my generation, many of whom are just leaving college and need to find a job somewhere...anywhere, even. But people my age have been given a bad rap in the media - labeled as spiritless and pouty in the workplace, seen as always needing their hands held, regarded as a distraction more than an asset. As recently as a week ago, people were talking about Gen-Y as a drain on productivity and workplace efficiency (click here to read).
From that same article:
"Managers have reported a lot of problems associated with this – primarily that these employees have unrealistic expectations and a strong resistance toward accepting negative feedback," he said.
"Basically entitlement involves having an inflated view of oneself, and managers are finding that younger employees are often very resistant to anything that doesn't involve praise and rewards," he added.
But this article from the Wall Street Journal actually makes Gen-Y seem...well, moderately competent and not stupid and whiny. Hooray! We've got at least one supporter.
From the WSJ article:
"Many Gen Y-ers are also becoming ... 'good workplace citizens.' That is, rather than demanding to be catered to, they're instead becoming prompt, dressing more appropriately, following up on obligations, and using better judgment. 'They're also shifting their attention from peer relationships to building rapport with managers, customers, vendors, and other decision makers...'"
Not only are my fellow whippersnappers becoming more professional, they're REALLY starting to take an interest in their finance management. According to this article from PlanAdviser.com, more and more Gen-Ys are asking for advice on retirement savings and benefits through work. The downturn has really taken its toll, shaking my generation lose of their false sense of entitlement and showing them that now is the time to straighten up and fly right.
Now, the question: what will you do with this information? Because if you're a Credit Union, one that's touting your capacity for smart savings and money management, you need to talk up your ability and your willingness to help young folks get their lives in order. Quit with all that "We're so dope and fly and fresh and jiggy!" talk. It's doing you no good. Make your message clear and plain - that you're willing to help the youngsters make smart decisions about their money and smart investments for their retirement. PNC has managed to make a go of it, signing up 20,000+ folks for its "virtual wallet", 70% of which were Gen-Y aged (click here to read all about it). You can do this, too. Just offer a smarter, easier way to "get" finance. A smarter, more humble Gen-Y will thank you for it.
Want to go to Inauguration Day ceremonies AND save the economy? Take advantage of Omni Hotels' "Commander-in-Chief" package in DC and get tickets to the event, a makeover, presidential cologne and...get this...a PUPPY! Sign up now!
And your "this counts as news" story of the week?
Police post want ad for people to become snitches. From MSNBC.com.
When we bring in a new client, we try and convince them that using email to on-board members is faster, easier, smarter and more effective than other methods. Email's great for building and strengthening member relationships. And we're not the only ones who think so.
BAI just published this article (click here to read) about E*Trade's on-boarding email practices. What's more, they presented this graphic representing the results of a Javelin research study.
[For details, click the image.] People are asking for email statements/communication. And for just the reasons I stated:
1) SPEED - Why wait on paper mail to get in touch with people? Two weeks to make one statement say "hello and welcome" to a new member? 2) EASE - One campaign can roll out within a matter of hours, not weeks worth of printing and prep. 3) INTELLIGENCE - Know who to send to, when to send and what to say. Don't waste time blanketing every member when you can target specific members and groups. 4) EFFECTIVE - You want $1.4 Million in new loans? Want to boost ROI? We've got the means.
Our ARB can do for you what E*Trade does for their new customers. To learn more, sign up for our webinar "Do you want fries with that?" by clicking the icon at the top of the left column.
My Very First Webinar (SPECIAL: The "Jimmy Challenge" Update!)
by Jimmy Marks
Seminars stink.
I mean it, they do. I've been to my share and they're mostly the same. Sure you get to network, you get to eat cheap bagels and find the newest features of your Blackberry, but then you wake up from your nap in the middle of the THIRD slideshow presentation about "boosting ROI" (whatever that means) and you realize you're trapped at a convention somewhere in [INSERT BORING STATE HERE].
Which is where Webinars are awesome. There's no driving, there's no bagels (unless you buy bagels on your own), and the notes are usually provided post-webinar so you don't have to do a ton of writing.
Recently, I sat shotgun on my first webinar here at DigitalMailer. The "Do You Want Fries With That?" webinar (the first in a series, anyway) was a ringing success - lots of attendees, lively conversation, and me as the emcee. Ron Daly, Greg Crandell, and super-awesome Account Manager Carolyn Johnson fielded questions and got to the nitty-gritty of our ARB, which builds relationships with members and cuts down on the high cost of printing/posting/mailing.
It's sort of strange, at first - it feels more like radio than an online seminar. But unlike radio, the people calling in/texting aren't trying to win hockey tickets. They're there to learn about your products, your expertise, and your opinions regarding the industry. So its your duty to put out the best presentation you can and to help people come to an understanding about the subject. I think we can expect more on this front in the future for a few reasons. For one, the rising cost of travel/fuel/space is going to put a dent in seminar attendance across the board. For another, with more and more businesses taking advantage of relatively inexpensive internet communication tools like Skype and GoToMeeting, the ease of this kind of connection is increasing. So why not take advantage of it?
We've got some slots left for the rest of the webinars for this year, so go sign up now! Click the "Fries" icon on the left column to get going!
____
THE JIMMY CHALLENGE:
How much have I saved to date?
$256
I think this might disappear soon as I have a car payment coming up, but hey...maybe I'll get lucky. Stay tuned to see how much more I can sock away!
They'll Be Runnin' from Collectors When They Come! The next hill to climb
by Ron Daly
Ready for some good news in all this doom-and-gloom? We've turned a corner in the financial crisis!
Ready for the bad news? It's the corner of Wall Street and Main Street.
What does that mean? Not everyone had stocks. Not everyone had thousands/millions/billions tied up in the market. Not everyone has 401k's and retirement packages.
But doggone if just about everyone has a credit card.
And now, banks and credit card companies are shielding themselves against bankruptcy by calling in the tab, so to speak - massive rate hikes, lowering of credit limits, and seizure of assets.
That question is one of the most famous examples of up-selling in American history. Today, credit union executives and marketing teams are striving to create the same up-sell message that will increase their service-per-member ratios. The fact of the matter is, credit unions are not really that good at up-selling when they are not face-to-face with the member. Until now...
How do you seal the deal in a wireless world?
Wikipedia defines Up-selling as a sales technique whereby a salesman attempts to have the customer purchase more expensive items, upgrades, or other add-ons in an attempt to make a more profitable sale.
Not too long ago a member had to walk into a branch to join, add a new service they needed or get a loan for a dream that they had. The face-to-face contact made our jobs easier to up-sell additional products or tell them what was new at the credit union.
Not anymore. Members can now join remotely, apply for loans online, make deposits and withdrawals from free ATMs around the world and hit a shared-branch. Have you ever stopped and considered how many members actually walk into your branches? Wonder if some members even know where your branches are? Or quite possibly what a credit union really is?
Sealing the deal in today’s wireless world is challenging credit unions. Experience has shown that credit unions are really not that good at up-selling when they are not face-to-face with the member.
TELL US NOW:Does your credit union still rely on face-to-face up-selling as its main method of moving products to members?
I took a few days to travel recently and needed cash. Not having any, I did the only sensible thing I could: hit up an ATM.
Now, my CU didn't have any branches where I was (out-of-state and all that) so I had to visit various ATMs in the area. And I was stunned and how much it cost in the long run.
I took two trips and removed $60 bucks each time. Each time, I was assessed a $3 fee from the ATM I visited and tacked on another dollar when I got home (from the CU itself, which doesn't like it when you go out of network).
So that's eight dollars gone. Think of all I could have bought with that! Two chicken sandwiches from McDonald's! A new Gary Larson calendar! 1,600 shares of GM!
I was relaying this problem to Ron, who looked at me quizzically.
"Why didn't you use the free ATM locator?" he asked. "Our credit union's website offers a program that shows free networked ATMs in a search area" (NOTE: That network he's referring to is the Co-Op Network, which is awesome.)
I could've kicked myself. Why didn't I think of that? But the better question is will YOU remember it when you go on your next trip? Banks and ATMs make millions every year in fees...money out of your pocket.
So use your Co-Op locator. Failing that, just go to a convenience store/grocery store and ask for cashback on a purchase. It can be a minor purchase, too, so not only do you get $40, you get delicious gum!
On Greed and Fear: How Credit Unions get the most out of the crisis.
by Ron Daly
Came across an article today written by Warren E. Buffett. Buffett knows money, I think that's safe to say. Read his very good article here.
Anyway, he said something in his op-ed piece that really stuck with me:
"A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful."
This was one of those things that, on the first read, was smart sounding. But reading it again gave me a clarity I hadn't expected. It made me think about our industry and how we SHOULD be looking at the opportunity presented. Now, more than ever, attention is placed on the stability of credit unions versus big banks. In the midst of the big earning days of low-rate loans and bum securities, banks were greedy and CUs were fearful...fearful of loaning and mortgaging irrational sums. Naturally, lending money to people who couldn't afford to pay it back turned out to be a bad idea.
So now comes the time where CUs are thriving and banks are scrambling to make up the difference. Is this the time to drop marketing? Is this the time to be weak-willed when it comes to drawing members? Quite the contrary.
Now's when CUs need to:
1) Market Hard 2) Consider their next round of member rewards and incentives 3) Become the "Bull" of finance, not the "Bear".
You are worthy of attention, CUs - you made the right decisions at the right time and you're getting praised for that. Now's your chance to be greedy when the other financial institutions are fearful.
I get this complaint from Credit Unions and other businesses all the time:
"We don't want to start sending e-mail messages and statements to our clients because we're going to get phished".
It's one of those funny statements like "life isn't fair" that's right and wrong all at the same time. The Credit Unions we serve aren't being phished. No one's asking them for crucial information and taking advantage of it. What happens is this: 1) Some crumb-bum (pardon my French) sets up a website/e-mail address and snags a picture of a CU's logo. 2) They start e-mailing people (members or not) and asking for their social security numbers, member numbers, account numbers, names, addresses, mother's maiden name, etc. 3) Here's where we get a split: 3A] The targeted e-mails drop the phish e-mail in their SPAM folder. End of discussion. 3B] The member gets smart and deletes it. End of discussion. 3C] The member ACTUALLY SENDS ALL OF THEIR CRUCIAL PERSONAL INFORMATION TO A COMPLETE STRANGER WITHOUT THINKING!!!!
Sorry, went a little crazy there. But it DRIVES me crazy. People short their members out of essential services in favor of "steering clear of trouble", so they say. Oh really?
I recall the 70s (yes, I was clean-living enough to remember some of it) - people would put boxes in front of ATMs marked *ATM BROKEN, PLACE DEPOSITS HERE*...and people did.
And, of course, we stopped using ATMs altogether.
Then, people started "vishing" - or voice phishing - by calling up people and taking their information or asking for mail-ins.
So naturally, we stopped using the telephone.
Is any of this sinking in? You can't just run away from technology because people start using it for ill. You're cheating the people you serve out of what they need to manage their money and make decisions regarding the use of your business.
:: Credit Union News :: The stability of the CU industry has been a hot topic for many online news sources recently. The stories that follow extol the virtues of credit unions in shaky financial times:
Be Upset...Be Very Upset: Bankers come forward to CNN about predatory lending
by Ron Daly
As the Financial Crisis looms and the bailout comes to life, the amount of damning evidence against finance companies continues to grow. This story, from CNN (click here for print), comes from two bankers who were pressured by Bank of America to drive cardholders deeper and deeper into debt.
Watch the video to see the story, or click the above link to read.
One of my colleagues managed to drop a back-issue of the Credit Union Times on my desk today. In it was an article (read the online version here) about how Credit Unions need to "think outside the box".
Ho hum, I thought, considering that just about every article that has ANYTHING to do with Credit Union marketing says those exact words. But then I kept reading (bad idea). The article goes on to say that:
Credit Unions have to get themselves onto Facebook and MySpace.
Gen - Y is the "Hannah Montana generation" (although it never says why).
Gen - Y has no interest in entering a brick-and-mortar building when it can do everything online.
No one cares about helping people.
The article goes on to make outrageous claims about how the iPhone and Bill Gates' retirement mean Macs will outdo PCs - which is bull. PCs claim about 75% of the marketshare, Apple moves around 6%. Read about that here.
The overarching question in the piece is "Are you still a CD Credit Union in an MP3 World?"
Right, I forgot - No one buys CDs anymore. Which is why THEY have shy of 90% of the market, compared to 10% for MP3s and - get this - 0.2% vinyl. People are still buying albums on vinyl!
The article is littered with buzzwords. "Evolve with the marketplace", "Be edgy","Outdo the Banks"...sorry, I nodded off there. I don't want to seem like I'm picking on anyone (I'm really not - the article's a good read and it DOES point out that sometimes the best way to appeal to a group is to latch on to their wants more than their needs), it's just that I'm tired of people in the CU industry who try to drive a square peg into a round hole when it comes to young customers. You want the truth about how young folks (like me) see finances?
I'll do this one thing at a time.
Credit Unions should be on Social Networks - Okay, so Facebook is important to advancing high schoolers and college kids. Fine. But nobody needs to get it in their head that all the problems CUs face trying to get youth membership will disappear when they sign their CU up for a MySpace page or a Twitter account.
Gen-Y uses these spaces as a personal tool, not a professional one (go back and read my old posts on Facebook and Social Networking - or don't, I don't care). So no, you don't get a bump in ROI because you uploaded your favorite videos of a dog chasing his tail. You want to advertise? Advertise. But don't try to "friend" me to tell me about a Roth IRA. I promise you I won't want to chat about it. Want to use Facebook's ACTUAL business tools? Here's a link. I just made your day.
Gen - Y LOVES Hannah Montana- I'd laugh at this if the thought didn't completely repulse me.
And why does this have anything to do with ANYTHING?!? Hannah Montana is not a real person. Is the idea that Gen - Y is desperate to be dual-identity pop stars? Did people in the 30s and 40s call their children "The Buck Rogers generation"? You CAN'T BOIL AN ENTIRE GENERATION OF PEOPLE DOWN TO A FAD. Fads disappear - and so does money, if you're not careful.
That's why we (the young) rely on Credit Unions to KEEP our money. This link points to a study saying that only about 19% of Gen-Y's total income gets saved (that's an average, now...nobody I know puts away 20%, not even me).
You can do it all online! - No, you can't.
I can't go online and speak to a loan officer. I can't go online and resolve a checking dispute or get the best service for a problem I'm having. My computer doesn't burp up cash when I need it. I can't count on my computer for everything.
Sometimes, you have to have a building with actual, living, breathing people inside. The speaker from the article says he's "of the generation that...learned to eliminate the middle man." Well, why's he still here? I point to self-checkout, a phenomenon that is popping up at more and more stores. I love self-checkout because I never have that much stuff and it all pretty much fits in one bag. But when I buy beer (I'm 22) or Lucky Charms (I don't act like I'm 22) that don't scan correctly or need cashier assistance, I can't just beg the machine to read my ID. It won't. Because there is NO SYSTEM in the world that can act without human input.
Drink machines don't refill themselves, Gas pumps don't just pump pure crude from out of the ground, and a bank can't run without people there to make sense of whose money is where. You can upgrade or downgrade a building, you can put balance sheets in the palm of someone's hand, but Credit Unions have to do with people. Part of the reason I joined my CU was because I got better service and support, not because of their website. Get real, people.
Nobody Cares About People - Who sold somebody with this one?
Gen - Y can, at times, come off a little selfish. But who isn't? We all want to get the most for our money and the most for ourselves. But one thing that someone had to tell me when I started my account at the CU was this: I own part of a financial institution. I put more into my investment every time I save, every time I borrow, and every time I walk through the lobby. I'm a financial powerhouse, and it only took $5.
You really want to hook Gen - Y? Explain to them that Credit Union membership means owning your own bank.
So, what's the lesson for the day? Well :
Social Network friending doesn't mean anything. I'm friends with people I've never met. Odds are, they only friended you to drive up their friendship number or as a novelty.
Online services are important, but they're only one leg on the table. Match, don't surpass, your online with your over-the-phone, e-mail and personal services.
Never lose your focus on PEOPLE. At the end of the day, Gen - Y wants to be treated well by their CU. That matters more than hip-hop and iPods and, yes, even Hannah Montana.
[EDITOR'S NOTE -- All trademarks and brand names copyright their respective owners]
I got curious when I saw this story pop up in my blog reader. It has to do with loans. Not car loans, which, like home loans, are defaulting at an alarming rate following the bad tidings from this weekend.
No, these were loans for fuel. I'll say that again - a loan for fuel.
This winter, the Maine Credit Union League has authorized small loans to people who have to keep warm. The loans, which have a $5,000 cap, are intended to keep people with high heating costs from getting stuck paying for outrageous fuel prices. The CU decides on the loan and, if and when the loan is approved, mail a check directly to the oil company.
This made me think about Microloans - Kiva.org is a good place to learn more - which involve loaning a small amount of money to a small, poor business to get them started/keep them going. The default rate on these loans is usually very small, and the business model leaves a bit to be desired - read this article from the New Yorker. All in all, however, microloans can make a difference in the lives of the "working poor" as they're often described.
As America has gotten more and more mired down in debt, the concept of more lending is always a little puzzling. Sure, people need things like homes and cars and now, sadly, very expensive fuel for those homes and cars. But what will it take to keep us from all being under the gun?
TIME FOR SOME OPINIONS:
What do you think of small, practical life loans, such as the "fuel loan" above or "micro-credit"? Do Credit Cards take the place of small personal loans?
Stormy Weather: The Weekend Brings Bad News for the Financial Sector
by Ron Daly
Our Friday post had to do with resources available to Texans who had been uprooted by Hurricane Ike. Even as we put together our list, we were uncertain of exactly what was in store. Thousands of people trapped after ignoring the evacuation mandate, thousands more stranded far from home - the picture is grim. But there are those who try to make it a little brighter, bit by bit.
Click the image above to donate. Special thanks to Brent Dixon at OpenSourceCU.com for breaking the story/providing the source code for the donation buttons. Visit their site to get the code for yourself/your blog/your credit union's webpage.
In a move that some would describe as shocking - and others would describe as the good nature of credit unions shining through in a time of need - Texas Dow Employees Credit Union has offered to delay loan/mortgage payments in the wake of the Hurricane. Their Senior VP of lending, Paul Perdue, put out this video:
But that's not the only big financial news from this weekend. Merrill-Lynch was swallowed by Bank of America, Lehman Bros. filed for bankruptcy, and the stock market hit its worst day since September 11, 2001 (won't link to stories, because they're everywhere already). How are CUs faring in the midst of this? This story from the Times Leader explains the urge for calm and how credit unions view the turmoil.
As someone who was a credit union CFO for a number of years and who has always kept an eye on how the financial industry moves, I'm interested to see what happens next in all these news stories.
20&Change: What're Ya Worrying About? [**SPECIAL REPORT: THE JIMMY CHALLENGE CONTINUES!**]
When my dad was 20, he asked my Uncle Allen, his brother-in-law, if he could borrow his brand new car. Allen wasn't sure, but dad told him he'd be very, very careful. He even went so far as to throw in a "don't worry".
Dad drove Allen's car into a river.
My grandmother was mad, but not surprised. Which brings me to Gen - Y marketing or, more appropriately, Gen - Y mentality. Lindsey Siegriest from CUTimes Wrote about this just recently (read the article here), saying Credit Unions and other financial institutions should start looking at not just Gen-Y, but "Gen-Z". That would be Tweens and Teens that are verging on spender status. After all, marketing professionals consider seven to be the start point of Gen-Z advertising - kids of age 11 are considered active consumers (more horrifying stats about how much young people spend can be found here).
That said, it's important to remember that Gen-Y is one slice of a $175.1 Billion dollar pie. A large slice of pie, to be sure, but a slice nonetheless.
In Communication, there is a theory known as the "Two-Step Flow of Communication". The idea is that there are opinion leaders and opinion followers - followers follow the leader. Still with me? Good.
Young people, more specifically Gen-Y, look to our parents to give us guidance and help us make decisions. We trust, respect, and admire their decision making skills. And here is where I eat a little crow: I, too, am "Gen-Y-ish" and wanted to get away from my point of origin from ages 14 to 20. But I, too, ask my parents about the big calls I have to make. And I've learned from their examples AND their mistakes. Here's the news that's not really news: YOUR KIDS WANT YOUR OPINION AND YOU CAN HELP THEM MAKE GOOD INVESTMENT DECISIONS. I don't need an article to back that up, but here's one anyway.
People my age and younger want to know they've done the right thing by socking their money away in a checking/savings/investment account. Let them know all the benefits and the differences in their choice of service. I'm not saying that the creative approaches to Gen-Y investing aren't good - some of them are really extensive (Young and Free, which is in Texas now), some are simple but to-the-point (BankerSpank.com), and some of them are hillarious (WhatTheB.com).
Then there's folks like me (you're reading the article) and CU Tomorrow from Filene (Hi, Ben and the Gang!) and Dane, Elliott and Lydia over at Callahan (they did their big webinar and it was a SMASHING success. Way to go, guys!). We just shout out our thoughts about the way we think and folks seem to get a kick out of it. But as much as you, the "big-wigs" rely on us for insight, remember: we're looking to our parents to give us guidance.
THE THREE COMMANDMENTS OF GEN-Y MARKETING: Don't talk down to us Don't waste our time with boring details, and Don't expect us to run right to financial responsibility.
(last minute fourth): And don't worry...we'll figure out how to save soon enough.
That said, it's time for "The Jimmy Challenge!" How much have I got saved after this past paycheck?
Drum roll....
$5! The amount I started with to open my member savings account. It seems that the idea of financial security was less tempting than a Redskins game and a concert...hoo boy.
Since this is our first time out, I'll forgo the "What Ron Says" section about how best to invest the amount I've got saved. I've decided to hang onto this tiny amount and wait until next week, when I'll have to start...you know, saving money. For real.
Have any ideas for what I could do with Mr. Lincoln? Send me 5 bucks worth of ideas to blogs@digitalmailer.com.
From CAN-SPAM to Spam Guards: Can You Still Reach Your Members?
Article by Ron Daly. This article was originally published in the Credit Union Times. Read it here at CUTimes.com.
As if newer, more robust spam filters weren’t enough to pull out the hair of legitimate e-mail marketers, the Federal Trade Commission’s final rule enforcing the CAN-SPAM Act became effective July 7. Is it the end of using e-mail to tell members about special offers?
Not at all. First, we should recognize that both of these consumer-protection measures are really good news. Few people appreciate receiving nuisance or unsavory junk mail, and putting reasonable restrictions on e-mail marketing may actually increase the likelihood of legitimate e-mail marketing getting through. By following the rules and learning what makes e-mail get stuck in spam guards, we can ensure that our promotions reach members’ inboxes.
The new FTC regulation focuses on four areas: unsubscribing, legal mailing addresses, definitions and responsibility for joint promotions. But for credit union marketing departments, the most important provision relates to honoring requests to unsubscribe.
If a member chooses to opt out of a sender’s e-mail, that request must be honored within three days (instead of the 10 days allowed under the FTC’s interim rule). Further, senders may not impose a fee on recipients asking to be removed from an e-mail list, nor can they require recipients to provide any information beyond their e-mail addresses and opt-out preferences. And finally, recipients may not be required to take any steps other than sending a reply or visiting a single page on a Web site.
Other provisions of the regulation involve the following:
Sender. The new rule defines who is a designated sender of e-mails and, therefore, responsible for complying with the CAN-SPAM Act’s opt-out requirement. This provision pertains to situations in which two organizations collaborate on promotions or advertising.
Mailing address. The credit union’s physical mailing address must be easy to find on its Web site. Or, if either a USPS or private mail box is used, it must be registered according to postal regulations.
Definition of person. The FTC rule added a clarification broadening the term “person” beyond natural persons to include groups, associations and corporations.
Please note that only promotional–not relational or transactional–messages are affected by CAN-SPAM. For more information on the new regulation, go to www.ftc.gov.
While spam filters have become more complex, ensuring that credit unions’ messages are delivered is a straightforward process. But it may require adjusting systems or working with e-mail service providers, such as DigitalMailer, that know their way around ISPs worldwide.
Credit unions can go beyond the FTC regulation and ensure deliverability by following these tips:
Preference-based e-mail. Allow members to choose the types of e-mail they wish to receive. Not only does this place your credit union well beyond CAN-SPAM rules, it also ensures you are invited into members’ inboxes.
Subject line and content. Stay away from punctuation or words (such as “free,” “save” or “buy”) that could raise red flags with the subject line. In the body of the message, avoid large images, logos or mastheads, which can take up valuable space or cause the viewer to see red “Xs.”
Certification. Make sure your system is certified or safe-listed with leading ISPs. And be sure to remove bad e-mail addresses that ISPs report as not being active.
Spam-check tools. Take advantage of tools that evaluate outgoing e-mail so you can correct messages that could trigger spam guards.
Register. Record your own SPF files to protect against forged sender addresses and to meet the growing list of ISPs requiring this form of identification.
With a few adjustments to make sure your procedures are in compliance and by staying attuned to spam-checker reports, you can continue to provide members with wanted information on special offers or new products.
It's that time again. Here's the buzz in the Credit Union industry.
Remember last week's article describing delinquency of payment at Credit Unions? [Here it is again if you missed it] Well, brace yourself for this article out of San Diego (which may hold a bit of good news, depending on your outlook). Click Here to Read.
Is your Credit Union's loan-to-share ratio looking a little funny? Maybe it's a lot higher than it's been in recent years? Click for this article, from Pacific Business News.
Jimmy should be posting another edition of "20&Change" in the next few days, but this deals with his previous article about money management training. Click to read about "GiveMe20".
Ron Daly's new segment, "Ron Rants", tells readers what gets him angry.
Every so often, I pick up my phone and find that the person calling is someone at their wits' end. They've had it with their inferior service at another vendor and they've finally called us to help them get their systems working the right way. Some call it "a lesson learned the hard way". I call it "getting hosed."
HOSED (n.) - Taken advantage of by a service provider that does NOT know what they're doing.
Why do people do this, you wonder? Because there's some sort of crazy idea about Internet services that says cheaper services are just as good as other services that are a bit more costly. This is as good as saying that a gas station hot dog is as delicious and filling as filet mignon. What gets in people's heads that says "this costs drastically less, but must be just as good"?
Does this mean that every online service that's any good is expensive? No. But when you pay money for a service - of any kind, really - you should be getting your money's worth. When your e-mails don't get through and your surveys don't produce results, you're getting hosed. H-o-s-e-d. So how do you avoid this?
1) DO YOUR HOMEWORK - It's not impossible to comparison shop web services. Good businesses can back up their performance with testimonials. They have corporate partners in the same line of work. They have evidence of success in the form of awards, mentions, and accolades. Are these things missing from your provider's site? They're HOSING you. Failing anything else, ask other businesses that have used the service in question. Hear what THEY have to say. With Web 2.0 becoming more and more prevalent, the idea of dialog is so important. Have a chat with people who know what's happening.
2) ASK FOR PAPERWORK - It's called due diligence. You take the time to ask for reports on success rates, for survey results, for feedback. When they don't provide it, give them the boot.
3) REMEMBER: IT HAPPENS BOTH WAYS - Every business began as a small business. Google was once something overshadowed by Yahoo!. Apple floundered for most of the 90s. David doesn't always slay Goliath, but he CAN avoid being stepped on: when you can get the same thing from vendor A that colossal vendor B has been giving you at a fraction of the cost, make the best decision you can.
Good support is everything. When your "helper" stops "helping", it's time to move on. Get the most out of your dollar and don't settle for second best. No one gets into business to be the most mediocre corner of the market. Long story short: DON'T GET HOSED!
Key West, FL - With Tropical Storm Fay bearing down on Florida, Keys Federal Credit Union wanted a way to let everyone know their branches wouldn't be open Monday morning. DigitalMailer worked overnight to make sure that the people of Key West knew the situation and prepared an e-Lert to help get the word out to members. The e-Lert went out Sunday evening and Monday found a number of people in the know about the storm and the situation.
UPDATE: The CREDIT UNION NATIONAL ASSOCIATION (CUNA) newsletter, CUNA NewsNow, published a story about Tropical Storm Fay and its effect on Credit Unions in Florida. DigitalMailer was featured in the article for its contributions to Key FCU's emergency information plan. Read the full article here: More CUs close as Fay gains strength
DigitalMailer's Crisis Management Notification System offers e-Lert services to your business to connect with customers and make them aware of threats and increase security and safety. Messages can be received by e-mail or by mobile device. To learn more, write us at info@digitalmailer.com or visit our CMNS page
Great Ideas from Credit Unions Like Yours: A Home for the Brave
Ron Daly brings you another edition of "Great Ideas from Credit Unions Like Yours", highlighting great ideas and innovations in the Credit Union industry.
Sgt. Joshua Brett and his wife were having trouble getting their mortgage. The Massachusetts couple wanted a home of their own, having dealt with Joshua's distance after three tours in Iraq and the shaky housing market. With few options, they turned to a new program developed by MassHousing. The program, called A Home for the Brave, was designed to help men and women of the Armed Services find affordable housing. The mortgage requires no downpayment, has payment protection and features closing-cost assistance for eligible veterans. The loan was initiated by First Citizens' Federal Credit Union and was backed by more than fifty institutions eager to give recognition to the brave service of a Veteran.
Has your Credit Union given to the community in a special way? Is there a program you'd like us to feature? Send us a message in our comments section.
If the credit union industry is as important to you as it is to Ron Daly, you won't want to miss these headlines. Ron gives us his take on recent articles from around the web.
Some stories I read in the past few days that are worth noting:
This article, from the Victorville Daily Press in California, really paints a picture. The High Desert Federal Credit Union suffered loan delinquencies as high as 20% and a loss of $4.7 Million. Most of this is blamed on the economic downturn and the crumbling real estate market. For the full story, click here.
A great article here about credit unions, banks, and deposit insurance. Click here to read.
Ever had to hit the ATM and lost money in the transaction? Did you know you contribute to the $4.4 billion made annually by financial institutions from these transaction fees? Read about it here.
A startling story out of South Carolina: A whole credit union shut down - click here.
Finally, a little ray of sunshine from Yahoo! Finance. Click here.
There are times when someone makes an over-generalization about people my age and I get my feathers up about it. It's never good to make sweeping judgements about a group, particularly people my age - we're all so different, so outstanding. But through personal experience, I've found there's one comment about people my age that's true: we SUCK at money. How much do we know? Most everyone I know gets the whole "work for your money" thing. I was a web designer for a year or so and I made some worthwhile achievements. Then I was a waiter. I'll leave you, dear reader, to figure out which kept me comfortable and which was a job as a waiter.
But then, there's those around me that seem to forget about the whole "bills, taxes, interest" thing. One of my friends admitted to me that their new job was great because their work didn't take any taxes out of their paycheck (she was technically classified as a contractor).
"You know they'll just hit you harder in April," I said, having played that game before myself.
"What happens in April?" she asked with a growing sense of concern.
Which is why it was no surprise to me to see this article from MSN Money. It's called "Why Generation Y is Broke", and it presents some startling facts. For instance:
68% of baby boomers are propping up their children financially
Average college debt: $20,000
Percentage of bankruptcies in the US filed by people ages 25 to 34: 22.7%
I'll be the first to admit - I'm not great with money, but I do know when to hang back on the spending and when to go ahead and do what I need to do. Did I get financial planning courses from my high school? Did those lovely years in college prepare me? No - I was simply lucky enough to be the son of the stingiest man in the universe.
My dad helped me open my first checking account and told me the golden rule of money management: "If you spend all your money, I'll kill you." That's a lesson that sticks with a boy of fifteen. But his guidance has meant all the difference in keeping my head above water financially. He taught me about taxes, property values, investments, assets, and personal finance.
The MSN article asks a question: Is Gen Y dumb, or just lazy? I wouldn't go so far as to call us lazy - or dumb, for that matter - just uninformed. A lot of people don't get how to balance a check book or track purchases. They don't get what compound interest means. They don't know how to solve the little crises that pop up in life. According to the article, more and more high schools offer financial planning classes. That's good news. I personally think that there should be a course that's all about budgeting your money and tracking spending. People my age (and in general) hate math, but there's a case to be made in studying practical math - "life math", if you will. It's not always just "credit" and "debit". You should be taught how mortgages work and how to pick out good rates on loans. More than that, there should be a savings segment.
Emma Johnson, the writer of the article, talks about how Gen Y is a "boomerang generation" - we come back home when we're supposed to be moving forward. I think it's more that we're a generation of "yo-yos"...pardon the phrase. There were any number of articles in the past few years about "helicopter parenting" - that is, parents who hover over their children and try to oversee every facet of their children's lives. Thus, it's not that my generation run back toward their parents in times of financial struggle - they just don't know anything else to do. I think the time has come to pass along a word of advice to my generation:
1) Your parents are trying to save up for their retirement. They want to turn your room into a gym and re-do the kitchen. Quit bugging them with your money problems.
2) Invest your money wisely. An iPhone is a toy. It is not an investment. Its value does not appreciate overtime. If the word "appreciate" doesn't mean anything to you, you don't deserve toys anyway.
3) Credit cards are good. They are useful. They are practical. They also have a limit. Don't go over. And pay them off, for crying out loud.
4) Keep a checking account. Keep a register for it. Remember what purchases you made by writing them down in the register. Keep your statements in a binder or, if you're so inclined, sign up for e-Statements which catalog your history.
5 (and, perhaps, the most important)) If you don't know what to do and you need financial planing advice, TALK TO SOMEONE AT YOUR CREDIT UNION OR BANK. They make money, too. And they do it by helping doofuses like you and I figure out what to do with our scratch. Let them help you.
So, it's here that I have to put up or shut up. If I don't show that I'm following my own advice, the readers (assuming someone reads my articles besides...well, me) will storm my office with pitchforks and torches and haul me off to be tarred and feathered. So, here it is:
THE JIMMY CHALLENGE
I vow to start putting away a portion of my pay each month into my savings account. After six months, I'll let you all know how much I've saved.
If there's anyone my age that wants to jump in on this challenge, let me know. I'd love to stack myself up next to some other folks who are looking to get their finances in check.
Right now, I've got $5 in my Share plan. I'll let you know how much is in there when September rolls around, and ask the people who know (CPAs, financial gurus, etc.) what's the next step in making my money work for me. That way, when someone says people my age are a bunch of bums, I'll be able to say "not me".
(PS - if there are any people out there who happen to know of programs that teach youngsters responsible spending, let me hear about it. jmarks@digitalmailer.com
Ron Daly talks about another great innovation in the Credit Union industry.
HarborOne Credit Union saw a problem. People for whom English is a second language are frequently left out in the cold when it comes to services they might find helpful. Marketers tend to write (and think) in one language for one audience, so some services fall under the radar of a non-English-speaking household. How, then, can you have a frank and helpful conversation about finance when you are meeting with people who speak a different language than your own? Likewise, how can you ask the questions that need asking with a barrier blocking communication?
HarborOne Credit Union provided a solution: the Multicultural Banking Center. The center was opened almost one year ago and has been a ringing success, both for HarborOne and the minority and immigrant populations they were hoping to serve. Non-English speaking people, or people that use English as a second language, are often targets of predatory investment scams. With the help of the Multicultural Banking Center, these people can learn about savings, checking accounts, credit lines and the home ownership process. HarborOne extended its services to include other community outreach programs designed to get people in need on the fast track to financial security.
HarborOne's MBC program has been so successful, it is under review by the National Credit Union Foundation (NCUF) to be used as a model for future facilities of its kind.
What's your take on the Multicultural Business Center? Is your Credit Union reaching customers in new and helpful ways? Talk to us in our Comment Section.
Ron Daly's new series "Credit Union Tech" goes through the innovations that changed the CU industry - and the world - for the better.
in 1939, plenty of people were dealing in cash. America had been through the financial wringer, with the Great Depression behind and the war in Europe growing larger and more destructive. With the New Deal, people had money again, and a real desire to save what they had in financial institutions that had been newly bolstered by the FDIC.
It was in this year that a man named Luther George Simjian put forth the patents for a machine that would make bank transactions after normal banking hours. At first, the idea was a flop - use of this machine was seen as seedy, with the majority of users being people who didn't want to be seen in a bank lobby. Citicorp thanked Simjian for the idea, but saw little use in further pursuit.
Simjian's idea became the Automatic Teller Machine, or ATM. Today, there is scarcely a bank or credit union without one. In some cases, there are merely terminals where money can change hands and customers can receive statements, make deposits and withdrawals, and manage their money on the go. As time rolls on, ATMs become more sophisticated and cover a wider range of services (i.e., some print maps of nearby locations for customers to use). It's clear now that we should all be thankful to Simjian for his initial effort...without it, we'd all have to get out of our car to handle our cash.
Have a question/idea you'd like us to talk about in "Credit Union Tech"? Write about it in comments.
Did you know that display ads account for more than 20 percent of US online advertising? At DigitalMailer, we specialize in finding the best ways to make your messages seen and heard. Some things to keep in mind: Location, Location, Location - Remember to keep your ads where they can be seen, which isn't to say that the top of the page is best - better to keep the ad within the initial screen viewers will see when they first click onto your site. One pitfall to avoid - don't put the banner right at the top of the page.
Make it interactive - Banner ads that lead to other pages and to the offers they promote mean more movement, more immersion, and more traffic to other key areas of your site. "Click-through" opportunities or links make for engrossed viewers.
Be fresh - Banner ads can be made to rotate, making it possible to show several offers in a matter of seconds. They can also be updated fairly frequently to make sure your customers can always see the most current information. Take advantage of this power - let customers know with only a few words what you have to offer and how they can make it work to their advantage.
I popped into DC yesterday (translation: "fought my way through nearly NYC-level traffic while trying not to run over all the joggers with iPods who don't care that the light-up hand means DON'T WALK") to have lunch with Lydia Cole and Dane Coalson, the Gen-Y Industry Analysts for Callahan, Inc. They were plenty friendly, taking time out of their day to go to a swanky little pan-asian joint a block or so away - thanks, by the way, to Cafe Asia, for terrific Pad Thai and a very funky atmosphere.
The things we talked about were mostly resume comparison - they went to different universities than I did (Dane's a Wahoo, Lydia went to Wellsley), they were different majors (Psyche and American Studies, respectively), and they went through Callahan's very involved orientation process. In that respect, they learned credit unions from the inside out and then went right into cutting them open like a biology-class frog. A gross analogy, I know, but worth noting because the two of them get credit union's concerns. They've been given a glimpse behind the curtain that very few get, and they really do know how to get that information across to readers. I'm from a much different spectrum - I didn't even know what a Credit Union was starting out. So, what did I know? I knew about the internet, I knew about where it was going, and I knew what was/wasn't working for businesses trying to cash in. Beyond that? I find out the answers when the questions come. It's a learning process for me, and it's shared by Lydia and Dane, too. They want for their stories and blogs what I want for mine - readership. And they've been getting it. I'm envious in a good way. It's strange, thinking that I've gotten to the point in my life where college is on the way out and real life is creeping on in. The work I've done, the things I've tried, what little of that handful of things has succeeded - yesterday, it hit me that all of that has become my experience. The fact that there are two other people in the world that started where I did and made their way to something important is sort of enlightening. For the record, both Lydia and Dane are considered "analysts", which is pretty big in my opinion...I'm still working on becoming the "Czar" of something, because honestly, what better title is there? But, I digress.
"You have to learn a lot about the industry," Dane said, spilling some manner of sauce on his shirt. "We can all bank on our youth as a selling point or point of interest, but better to know the industry and have plenty to say."
"That's true," said Lydia over her delicious looking fried rice platter. "I wrote an article about the recent upswing in borrowing. It's been well received." It's true - Lydia's article has, to date, received 535 reads, which is terrific. We talked about a lot of things during our all-to-brief lunch: where's the best calamari in town; who's coming out with what Webinars; how we didn't have internet for the longest time before seeing our first dial-up connection come to life; how we're all working to make Web 2.0 something that is useful to the credit union industry. But beneath all our crazy ideas and our real-life snippets, the air of dedication. The kind of dedication it takes to believe that what we're doing is helpful - to people, to the industry, to our companies, to the future and the concept of growth. If we didn't care about what we do, it wouldn't just fester beneath the surface and never show. A lack of dedication online means the whole world can see your displeasure. It's our goal to always put our best foot forward and to do unto the internet what it's done unto us: inform, inspire, enlighten, and expand.
Leaving DC yesterday taught me two outstanding lessons:
1) When planning a trip, know not only where you're going to go after you've parked, but where you're going to be parking. $14 for a decent garage and I still nearly had a coronary when I thought the valets lost my car in the lot.
2) Don't be afraid to reach out to others in the industry that can give you advice, help, and encouragement. Lydia and Dane know what it takes to reach the "youngsters" in the credit union arena. They're sharp, they're self-aware, and they're willing to show you the way. I'd be a fool to think my own experience/the information I gather is enough - I have to rely on the people who really do know the ins and outs of making this business - or any business, for that matter - work.
Which brings me to DigitalMailer, my "handlers". They've been good sports about unleashing me on the internet like some terrible hurricane because they trust my judgement. I've been through the gauntlet of the online world from a few sides now and each trip through has taught me something new and useful. I'm gaining more knowledge every day, finding new ways to pigeonhole it into my work here. In the end, I give them the best I've got and they give me a check that's worth the time it took. How do they get the money for that check?
Because they do what I do, but on a much larger scale.
DigitalMailer gives credit unions a look at their experience and their knowledge in the form of hard numbers. They've helped credit unions make millions in new loans and new members. Their systems are, quite literally, second to none in terms of dependability, speed, reach and return. There are few, if any, people that do this as well as we do. We learn more about our potential to serve all the time, and we apply that learning to the process of improving and maintaining our systems. It can seem risky to hire an outside company to boost marketing, increase member participation, and increase ROI. But people hire DigitalMailer for the same reason Dane, Lydia and I all wound up with our jobs - they want to improve their relationships with the people that make up their business. In my study of Public Relations, I've learned about brand loyalty. The folks that use us do so for one specific reason - there's nobody better.
I get the feeling that, barring anyone finds out about my beautiful singing voice and suave, manly looks (are you getting this, Hollywood?), I'll be at DigitalMailer for a good long while. I'll keep doing my best to let you know that DigitalMailer is the best at what we do. You just be sure to pay attention.
